Hanmi Financial Corporation Reports Net Income of $11.1 Million for Third Quarter of 2007
LOS ANGELES--(BUSINESS WIRE)--
Hanmi Financial Corporation (NASDAQ:HAFC), the holding company for Hanmi Bank, reported that for the three months ended September 30, 2007, it earned net income of $11.1 million, a decrease of 27.6 percent compared to net income of $15.3 million for the second quarter of 2007. Earnings per share were $0.23 (diluted), a decrease of 25.8 percent compared to $0.31 per share (diluted) for the second quarter of 2007.
"Our strong loan growth and the opening of our 24th branch during the quarter were overshadowed by higher loan loss provisions and continued margin compression. During the quarter, our loan portfolio increased $164.0 million and we opened a new branch in Rancho Cucamonga, California," said Sung Won Sohn, Ph.D., President and Chief Executive Officer. "However, our net interest margin decreased from 4.51 percent in the second quarter to 4.26 percent in the third quarter. We expect our margin to continue to experience competitive pressures in the near term and the recent change in the Federal Reserve monetary policy will hurt margins until it is fully reflected in the repricing of our time deposits."
"The third quarter increase of $5.4 million in the provision for credit losses stems in part from a group of six related business acquisition loans amounting to $3.6 million, some of which have become the subject of litigation that we initiated."
"In this uncertain economic and financial environment, the asset quality is a serious concern for all lenders. Fortunately, Hanmi's exposure to the residential market is minimal. The commercial real estate market, about two-thirds of Hanmi's portfolio, continues to remain healthy. However, in recent quarters, we have experienced higher delinquencies and charge-offs resulting from a more challenging environment for our customers."
THIRD-QUARTER HIGHLIGHTS
-- Net interest income before provision for credit losses was $37.9 million for the third quarter of 2007, compared to $38.6 million for the second quarter of 2007 and $39.7 million for the third quarter of 2006, reflecting a 2.8 percent and 7.3 percent, respectively, sequential increase in average interest-earning assets. Net interest margin for the third quarter of 2007 was 4.26 percent, compared to 4.51 percent for the second quarter of 2007 and 4.79 percent for the third quarter of 2006.
-- The loan portfolio increased by $354.9 million, or 12.4 percent, to $3.22 billion at September 30, 2007, compared to $2.86 billion at December 31, 2006, reflecting continued growth in commercial and industrial loans.
-- Non-performing loans increased by $22.1 million to $44.7 million, or 1.39 percent of the portfolio, at September 30, 2007, compared to $22.6 million, or 0.74 percent of the portfolio, at June 30, 2007. Loans over 30 days delinquent increased from $32.0 million at June 30, 2007 to $55.0 million at September 30, 2007.
-- The provision for credit losses was $8.5 million for the third quarter of 2007, compared to $3.0 million for the second quarter of 2007 and $1.7 million for the third quarter of 2006.
-- The allowance for loan losses was 1.07 percent, 1.05 percent and 0.99 percent of the gross loan portfolio at September 30, 2007, June 30, 2007 and September 30, 2006, respectively.
-- During the third quarter, the Company repurchased 1,004,100 of its shares at a cost of $15.0 million, or $14.90 per share.
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES
Net interest income before provision for credit losses was $37.9 million for the third quarter of 2007, a decrease of $735,000, or 1.9 percent, compared to $38.6 million for the second quarter of 2007, and a decrease of $1.9 million, or 4.7 percent, compared to $39.7 million for the third quarter of 2006.
The yield on the loan portfolio was 8.44 percent for the third quarter of 2007, a decrease of 24 basis points compared to 8.68 percent for the second quarter of 2007, and a decrease of 45 basis points compared to 8.89 percent for the third quarter of 2006. The yield on investment securities was 4.52 percent for the third quarter of 2007, an increase of 12 basis points compared to 4.40 percent for the second quarter of 2007, and an increase of four basis points compared to 4.48 percent for the third quarter of 2006.
The yield on average interest-earning assets was 8.01 percent for the third quarter of 2007, a decrease of 16 basis points compared to 8.17 percent for the second quarter of 2007, and a decrease of 28 basis points compared to 8.29 percent for the third quarter of 2006. The cost of interest-bearing liabilities was 4.93 percent for the third quarter of 2007, an increase of one basis point compared to 4.92 percent for the second quarter of 2007, and an increase of 20 basis points compared to 4.73 percent for the third quarter of 2006, as the competitive deposit rate environment continued to stabilize.
PROVISION FOR CREDIT LOSSES
The provision for credit losses was $8.5 million for the third quarter of 2007, compared to $3.0 million for the second quarter of 2007 and $1.7 million for the third quarter of 2006. In the third quarter of 2007, net charge-offs were $6.1 million, compared to $2.5 million for the second quarter of 2007 and $656,000 for the third quarter of 2006.
The sequential increase in the provision for credit losses is attributable to an increased migration of loans into more adverse risk rating categories, including a group of six related business acquisition loans amounting to $3.6 million, some of which have become the subject of litigation; an increase of $164.0 million, or 5.4 percent, in the loan portfolio; and a higher rate of increase in non-performing assets, which increased $21.3 million in the third quarter to a balance of $45.0 million at September 30, 2007, compared to an increase of $4.2 million to a balance of $23.7 million at June 30, 2007.
Delinquent loans increased to $55.0 million, or 1.71 percent of gross loans, at September 30, 2007 from $32.0 million, or 1.05 percent of gross loans, at June 30, 2007. While the level of non-performing assets and delinquent loans are indicators of the credit quality of the portfolio, the provision for credit losses is determined primarily on the basis of loan classifications and the historical loss experience with similarly situated credits.
NON-INTEREST INCOME
Non-interest income decreased by $1.2 million, or 10.9 percent, to $9.5 million for the third quarter of 2007, compared to $10.7 million for the second quarter of 2007, and increased by $354,000, or 3.9 percent, compared to $9.2 million for the third quarter of 2006. The decrease in non-interest income from the second quarter of 2007 to the third quarter of 2007 is primarily attributable to a $1.2 million decrease in the amount of gain on sales of loans. The increase in non-interest income from the third quarter of 2006 to the third quarter of 2007 is primarily attributable to an increase of $881,000 in insurance commissions, reflecting the acquisitions of two insurance agencies in the first quarter of 2007, and a $226,000 gain on sale of OREO, partially offset by a $877,000 decrease in the amount of gain on sales of loans.
NON-INTEREST EXPENSES
Non-interest expenses decreased by $241,000, or 1.1 percent, to $21.2 million for the third quarter of 2007, compared to $21.5 million for the second quarter of 2007, and increased by $1.4 million, or 7.0 percent, compared to $19.9 million for the third quarter of 2006. Salaries and employee benefits increased by $636,000, or 5.9 percent, sequentially from $10.8 million for the second quarter of 2007 to $11.4 million for the third quarter of 2007 because of the opening of the Rancho Cucamonga branch in August 2007 and increased accruals for incentive compensation.
The efficiency ratio (non-interest expenses divided by the sum of net interest income before provision for credit losses and non-interest income) for the third quarter of 2007 was 44.85 percent, compared to 43.61 percent for the second quarter of 2007 and 40.61 percent for the third quarter of 2006, in part reflecting the acquisitions of two insurance agencies in the first quarter of 2007 and the opening of the Rancho Cucamonga and Fullerton branches during 2007.
PROVISION FOR INCOME TAXES
The provision for income taxes reflects a 37.2 percent effective tax rate for the third quarter of 2007, compared to a 38.1 percent effective tax rate for the second quarter of 2007 and a 35.7 percent effective tax rate for the third quarter of 2006. Changes in the effective tax rate reflect a relatively stable level of Enterprise Zone and low-income housing tax credits in periods in which there were changes in taxable income.
FINANCIAL POSITION
Total assets were $4.01 billion at September 30, 2007, an increase of $286.4 million, or 7.7 percent, compared to $3.73 billion at December 31, 2006, and an increase of $272.5 million, or 7.3 percent, from the September 30, 2006 balance of $3.74 billion.
At September 30, 2007, net loans totaled $3.19 billion, an increase of $348.0 million, or 12.3 percent, from $2.84 billion at December 31, 2006. Real estate loans increased by $57.7 million, or 5.5 percent, to $1.10 billion at September 30, 2007, compared to $1.04 billion at December 31, 2006, and commercial and industrial loans grew by $306.6 million, or 17.8 percent, to $2.03 billion at September 30, 2007, compared to $1.73 billion at December 31, 2006.
The growth in total assets was funded primarily by an increase in FHLB advances and other borrowings of $192.3 million, up 113.8 percent to $361.3 million at September 30, 2007, compared to $169.0 million at December 31, 2006. In addition, deposits increased $102.8 million, up 3.5 percent to $3.05 billion at September 30, 2007 from $2.94 billion at December 31, 2006. The increase in deposits included increases in time deposits of $100,000 or more of $91.4 million, up 6.6 percent to $1.47 billion, in money market checking accounts of $38.0 million, up 8.7 percent to $476.3 million, and in other time deposits of $16.4 million, up 5.5 percent to $311.9 million, partially offset by decreases in noninterest-bearing demand deposits of $37.8 million, down 5.2 percent to $690.5 million, and in savings accounts of $5.1 million, down 5.1 percent to $94.2 million.
ASSET QUALITY
Total non-performing assets, including loans 90 days or more past due and still accruing, non-accrual loans and other real estate owned ("OREO") assets, increased by $30.8 million to $45.0 million at September 30, 2007 from $14.2 million at December 31, 2006, and increased by $31.5 million from $13.5 million at September 30, 2006. Non-performing loans at September 30, 2007 included a $17 million construction loan for low-income housing that is fully collateralized and participated in by the local government. The downgrade of this loan relates to project cost overruns and construction delays. Despite these set backs we anticipate the project being completed and our loan being repaid without a loss to the Bank. Additionally, to date, we have never lost any money on low-income housing projects. Non-performing loans as a percentage of gross loans increased to 1.39 percent at September 30, 2007 from 0.50 percent at December 31, 2006 and 0.47 percent at September 30, 2006.
At September 30, 2007, delinquent loans were $55.0 million, or 1.71 percent of gross loans, compared to $19.6 million, or 0.68 percent of gross loans, at December 31, 2006, and $24.1 million, or 0.84 percent of gross loans, at September 30, 2006.
At September 30, 2007, the Company maintained an allowance for loan losses of $34.5 million and a liability for off-balance sheet exposure, primarily unfunded loan commitments, of $1.8 million. The allowance for loan losses represented 1.07 percent of gross loans at September 30, 2007, compared to 0.96 percent and 0.99 percent at December 31, 2006 and September 30, 2006, respectively. As of September 30, 2007, the allowance for loan losses was 77.19 percent of non-performing loans, compared to 193.9 percent at December 31, 2006 and 209.8 percent at September 30, 2006.
ABOUT HANMI FINANCIAL CORPORATION
Headquartered in Los Angeles, Hanmi Bank, a wholly owned subsidiary of Hanmi Financial Corporation, provides services to the multi-ethnic communities of California, with 24 full-service offices in Los Angeles, Orange, San Bernardino, San Francisco, Santa Clara and San Diego counties, and nine loan production offices in California, Colorado, Georgia, Illinois, Texas, Virginia and Washington. Hanmi Bank specializes in commercial, SBA, trade finance and consumer lending, and is a recognized community leader. Hanmi Bank's mission is to provide a full range of quality products and premier services to its customers and to maximize shareholder value. Additional information is available at www.hanmifinancial.com.
FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements, which are included in accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of such terms and other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statement. These factors include the following: general economic and business conditions in those areas in which we operate; demographic changes; competition for loans and deposits; fluctuations in interest rates; risks of natural disasters related to our real estate portfolio; risks associated with SBA loans; changes in governmental regulation; credit quality; the ability of borrowers to perform under the terms of their loans and other terms of credit agreements; our ability to successfully integrate acquisitions we may make; the availability of capital to fund the expansion of our business; and changes in securities markets. In addition, we set forth certain risks in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2006, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
September 30, December 31, %
2007 2006 Change
------------- ----------------------
ASSETS
---------------------------------
Cash and Due from Banks $ 103,789 $ 97,501 6.4%
Federal Funds Sold -- 41,000 (100.0)%
------------- ------------ --------
Cash and Cash Equivalents 103,789 138,501 (25.1)%
------------- ------------ --------
Term Federal Funds Sold -- 5,000 (100.0)%
Investment Securities 357,616 391,579 (8.7)%
Loans:
Loans, Net of Deferred Loan
Fees 3,219,871 2,864,947 12.4%
Allowance for Loan Losses (34,503) (27,557) 25.2%
------------- ------------ --------
Net Loans 3,185,368 2,837,390 12.3%
------------- ------------ --------
Customers' Liability on
Acceptances 5,357 8,403 (36.2)%
Premises and Equipment, Net 20,597 20,075 2.6%
Accrued Interest Receivable 17,619 16,919 4.1%
Other Real Estate Owned 287 -- --
Deferred Income Taxes 13,480 13,064 3.2%
Servicing Asset 4,328 4,579 (5.5)%
Goodwill 209,991 207,646 1.1%
Other Intangible Assets 7,457 6,312 18.1%
Federal Reserve Bank and Federal
Home Loan Bank Stock 25,525 24,922 2.4%
Bank-Owned Life Insurance 24,285 23,592 2.9%
Other Assets 35,916 27,261 31.7%
------------- ------------ --------
Total Assets $4,011,615 $3,725,243 7.7%
============= ============ ========
LIABILITIES AND SHAREHOLDERS'
EQUITY
---------------------------------
Liabilities:
Deposits:
Noninterest-Bearing $ 690,513 $ 728,347 (5.2)%
Interest-Bearing 2,357,044 2,216,368 6.3%
------------- ------------ --------
Total Deposits 3,047,557 2,944,715 3.5%
Accrued Interest Payable 20,449 22,582 (9.4)%
Acceptances Outstanding 5,357 8,403 (36.2)%
FHLB Advances and Other
Borrowings 361,344 169,037 113.8%
Junior Subordinated
Debentures 82,406 82,406 --
Other Liabilities 11,593 10,983 5.6%
------------- ------------ --------
Total Liabilities 3,528,706 3,238,126 9.0%
Shareholders' Equity 482,909 487,117 (0.9)%
------------- ------------ --------
Total Liabilities and
Shareholders' Equity $4,011,615 $3,725,243 7.7%
============= ============ ========
September 30, %
2006 Change
-----------------------
ASSETS
-----------------------------------------------
Cash and Due from Banks $ 97,609 6.3%
Federal Funds Sold 67,000 (100.0)%
-------------- --------
Cash and Cash Equivalents 164,609 (36.9)%
-------------- --------
Term Federal Funds Sold -- --
Investment Securities 398,956 (10.4)%
Loans:
Loans, Net of Deferred Loan Fees 2,850,146 13.0%
Allowance for Loan Losses (28,276) 22.0%
-------------- --------
Net Loans 2,821,870 12.9%
-------------- --------
Customers' Liability on Acceptances 11,245 (52.4)%
Premises and Equipment, Net 20,322 1.4%
Accrued Interest Receivable 16,190 8.8%
Other Real Estate Owned -- --
Deferred Income Taxes 10,959 23.0%
Servicing Asset 4,266 1.5%
Goodwill 207,646 1.1%
Other Intangible Assets 6,876 8.4%
Federal Reserve Bank and Federal Home Loan Bank
Stock 24,768 3.1%
Bank-Owned Life Insurance 23,368 3.9%
Other Assets 28,080 27.9%
-------------- --------
Total Assets $3,739,155 7.3%
============== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
-----------------------------------------------
Liabilities:
Deposits:
Noninterest-Bearing $ 756,901 (8.8)%
Interest-Bearing 2,216,880 6.3%
-------------- --------
Total Deposits 2,973,781 2.5%
Accrued Interest Payable 19,191 6.6%
Acceptances Outstanding 11,245 (52.4)%
FHLB Advances and Other Borrowings 169,435 113.3%
Junior Subordinated Debentures 82,406 --
Other Liabilities 12,392 (6.4)%
-------------- --------
Total Liabilities 3,268,450 8.0%
Shareholders' Equity 470,705 2.6%
-------------- --------
Total Liabilities and Shareholders' Equity $3,739,155 7.3%
============== ========
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in Thousands, Except Per Share Data)
For the Three Months Ended
--------------------------------
Sept. 30, June 30, %
2007 2007 Change
----------- ----------- --------
INTEREST INCOME:
Interest and Fees on Loans $ 66,714 $ 65,212 2.3%
Interest on Investments 4,422 4,472 (1.1)%
Interest on Federal Funds Sold 61 176 (65.3)%
Interest on Term Federal Funds
Sold -- -- --
----------- ----------- --------
Total Interest Income 71,197 69,860 1.9%
----------- ----------- --------
INTEREST EXPENSE:
Interest on Deposits 27,882 26,691 4.5%
Interest on FHLB Advances and Other
Borrowings 3,785 2,919 29.7%
Interest on Junior Subordinated
Debentures 1,675 1,660 0.9%
----------- ----------- --------
Total Interest Expense 33,342 31,270 6.6%
----------- ----------- --------
NET INTEREST INCOME BEFORE PROVISION
FOR CREDIT LOSSES 37,855 38,590 (1.9)%
--
Provision for Credit Losses 8,464 3,023 180.0%
----------- ----------- --------
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES 29,391 35,567 (17.4)%
----------- ----------- --------
NON-INTEREST INCOME:
Service Charges on Deposit
Accounts 4,463 4,438 0.6%
Insurance Commissions 1,131 1,279 (11.6)%
Trade Finance Fees 1,082 1,177 (8.1)%
Remittance Fees 512 520 (1.5)%
Other Service Charges and Fees 691 574 20.4%
Bank-Owned Life Insurance Income 234 229 2.2%
Increase in Fair Value of
Derivatives 207 222 (6.8)%
Other Income 457 491 (6.9)%
Gain on Sales of Loans 523 1,762 (70.3)%
Gain on Sales of Other Real
Estate Owned 226 -- --
----------- ----------- --------
Total Non-Interest Income 9,526 10,692 (10.9)%
----------- ----------- --------
NON-INTEREST EXPENSES:
Salaries and Employee Benefits 11,418 10,782 5.9%
Occupancy and Equipment 2,657 2,571 3.3%
Data Processing 1,540 1,665 (7.5)%
Advertising and Promotion 943 889 6.1%
Supplies and Communications 704 704 --
Professional Fees 565 647 (12.7)%
Amortization of Other Intangible
Assets 570 592 (3.7)%
Decrease in Fair Value of
Embedded Option 37 196 (81.1)%
Other Operating Expenses 2,815 3,444 (18.3)%
----------- ----------- --------
Total Non-Interest
Expenses 21,249 21,490 (1.1)%
----------- ----------- --------
INCOME BEFORE PROVISION FOR INCOME
TAXES 17,668 24,769 (28.7)%
Provision for Income Taxes 6,580 9,446 (30.3)%
----------- ----------- --------
NET INCOME $ 11,088 $ 15,323 (27.6)%
=========== =========== ========
EARNINGS PER SHARE:
Basic $ 0.23 $ 0.32 (28.1)%
Diluted $ 0.23 $ 0.31 (25.8)%
WEIGHTED-AVERAGE SHARES OUTSTANDING:
Basic 47,355,143 48,397,824
Diluted 47,536,078 48,737,574
SHARES OUTSTANDING AT PERIOD-END 46,986,341 47,950,929
For the Three Months
Ended
--------------------
Sept. 30, %
2006 Change
------------ -------
INTEREST INCOME:
Interest and Fees on Loans $ 63,392 5.2%
Interest on Investments 4,836 (8.6)%
Interest on Federal Funds Sold 436 (86.0)%
Interest on Term Federal Funds Sold -- --
------------ -------
Total Interest Income 68,664 3.7%
------------ -------
INTEREST EXPENSE:
Interest on Deposits 25,178 10.7%
Interest on FHLB Advances and Other Borrowings 2,084 81.6%
Interest on Junior Subordinated Debentures 1,672 0.2%
------------ -------
Total Interest Expense 28,934 15.2%
------------ -------
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT
LOSSES 39,730 (4.7)%
--
Provision for Credit Losses 1,682 403.2%
------------ -------
NET INTEREST INCOME AFTER PROVISION FOR CREDIT
LOSSES 38,048 (22.8)%
------------ -------
NON-INTEREST INCOME:
Service Charges on Deposit Accounts 4,249 5.0%
Insurance Commissions 250 352.4%
Trade Finance Fees 1,227 (11.8)%
Remittance Fees 517 (1.0)%
Other Service Charges and Fees 591 16.9%
Bank-Owned Life Insurance Income 221 5.9%
Increase in Fair Value of Derivatives 389 (46.8)%
Other Income 328 39.3%
Gain on Sales of Loans 1,400 (62.6)%
Gain on Sales of Other Real Estate Owned -- --
------------ -------
Total Non-Interest Income 9,172 3.9%
------------ -------
NON-INTEREST EXPENSES:
Salaries and Employee Benefits 10,357 10.2%
Occupancy and Equipment 2,482 7.1%
Data Processing 1,431 7.6%
Advertising and Promotion 665 41.8%
Supplies and Communications 636 10.7%
Professional Fees 390 44.9%
Amortization of Other Intangible Assets 585 (2.6)%
Decrease in Fair Value of Embedded Option 78 (52.6)%
Other Operating Expenses 3,237 (13.0)%
------------ -------
Total Non-Interest Expenses 19,861 7.0%
------------ -------
INCOME BEFORE PROVISION FOR INCOME TAXES 27,359 (35.4)%
Provision for Income Taxes 9,762 (32.6)%
------------ -------
NET INCOME $ 17,597 (37.0)%
============ =======
EARNINGS PER SHARE:
Basic $ 0.36 (36.1)%
Diluted $ 0.36 (36.1)%
WEIGHTED-AVERAGE SHARES OUTSTANDING:
Basic 48,890,662
Diluted 49,450,601
SHARES OUTSTANDING AT PERIOD-END 48,991,146
For the Nine Months Ended
--------------------------------
Sept. 30, Sept. 30, %
2007 2006 Change
------------ ----------- -------
INTEREST INCOME:
Interest and Fees on Loans $ 194,487 $ 175,409 10.9%
Interest on Investments 13,558 14,948 (9.3)%
Interest on Federal Funds Sold 963 748 28.7%
Interest on Term Federal Funds
Sold 5 -- --
------------ ----------- -------
Total Interest Income 209,013 191,105 9.4%
------------ ----------- -------
INTEREST EXPENSE:
Interest on Deposits 80,654 66,690 20.9%
Interest on FHLB Advances and Other
Borrowings 8,875 4,699 88.9%
Interest on Junior Subordinated
Debentures 4,974 4,734 5.1%
------------ ----------- -------
Total Interest Expense 94,503 76,123 24.1%
------------ ----------- -------
NET INTEREST INCOME BEFORE PROVISION
FOR CREDIT LOSSES 114,510 114,982 (0.4)%
--
Provision for Credit Losses 17,619 5,542 217.9%
------------ ----------- -------
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES 96,891 109,440 (11.5)%
------------ ----------- -------
NON-INTEREST INCOME:
Service Charges on Deposit
Accounts 13,389 12,663 5.7%
Insurance Commissions 3,535 646 447.2%
Trade Finance Fees 3,549 3,414 4.0%
Remittance Fees 1,503 1,537 (2.2)%
Other Service Charges and Fees 1,881 1,739 8.2%
Bank-Owned Life Insurance Income 693 654 6.0%
Increase in Fair Value of
Derivatives 521 723 (27.9)%
Other Income 1,223 911 34.2%
Gain on Sales of Loans 3,685 3,550 3.8%
Gain on Sales of Other Real
Estate Owned 226 48 370.8%
------------ ----------- -------
Total Non-Interest Income 30,205 25,885 16.7%
------------ ----------- -------
NON-INTEREST EXPENSES:
Salaries and Employee Benefits 33,961 30,209 12.4%
Occupancy and Equipment 7,740 7,122 8.7%
Data Processing 4,768 4,314 10.5%
Advertising and Promotion 2,493 2,122 17.5%
Supplies and Communications 1,996 1,848 8.0%
Professional Fees 1,686 1,550 8.8%
Amortization of Other Intangible
Assets 1,776 1,815 (2.1)%
Decrease in Fair Value of
Embedded Option 233 292 (20.2)%
Other Operating Expenses 9,055 8,126 11.4%
------------ ----------- -------
Total Non-Interest
Expenses 63,708 57,398 11.0%
------------ ----------- -------
INCOME BEFORE PROVISION FOR INCOME
TAXES 63,388 77,927 (18.7)%
Provision for Income Taxes 23,922 29,588 (19.1)%
------------ ----------- -------
NET INCOME $ 39,466 $ 48,339 (18.4)%
============ =========== =======
EARNINGS PER SHARE:
Basic $ 0.82 $ 0.99 (17.2)%
Diluted $ 0.81 $ 0.98 (17.3)%
WEIGHTED-AVERAGE SHARES OUTSTANDING:
Basic 48,232,464 48,809,921
Diluted 48,569,863 49,395,152
SHARES OUTSTANDING AT PERIOD-END 46,986,341 48,991,146
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in Thousands)
For the Three Months Ended
---------------------------------
Sept. 30, June 30, %
2007 2007 Change
----------- ---------------------
AVERAGE BALANCES:
Average Gross Loans, Net of
Deferred Loan Fees $3,135,531 $3,014,895 4.0%
Average Investment Securities 360,626 375,598 (4.0)%
Average Interest-Earning Assets 3,526,493 3,429,123 2.8%
Average Total Assets 3,915,517 3,818,170 2.5%
Average Deposits 3,016,118 2,967,748 1.6%
Average Borrowings 367,605 304,744 20.6%
Average Interest-Bearing
Liabilities 2,683,930 2,551,665 5.2%
Average Shareholders' Equity 487,006 495,719 (1.8)%
Average Tangible Equity 269,255 277,414 (2.9)%
PERFORMANCE RATIOS:
Return on Average Assets 1.12% 1.61%
Return on Average Shareholders'
Equity 9.03% 12.40%
Return on Average Tangible
Equity 16.34% 22.15%
Efficiency Ratio 44.85% 43.61%
Net Interest Margin 4.26% 4.51%
ALLOWANCE FOR LOAN LOSSES:
Balance at the Beginning of
Period $ 32,190 $ 31,527 2.1%
Provision Charged to Operating
Expense 8,397 3,181 164.0%
Charge-Offs, Net of Recoveries (6,084) (2,518) 141.6%
----------- -------------------
Balance at the End of Period $ 34,503 $ 32,190 7.2%
=========== ===================
Allowance for Loan Losses to
Total Gross Loans 1.07% 1.05%
Allowance for Loan Losses to
Total Non-Performing Loans 77.19% 142.30%
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS:
Balance at the Beginning of
Period $ 1,730 $ 1,888 (8.4)%
Provision Charged to Operating
Expense 67 (158)(142.4)%
----------- -------------------
Balance at the End of Period $ 1,797 $ 1,730 3.9%
=========== ===================
For the Three Months
Ended
--------------------
Sept. 30, %
2006 Change
------------ -------
AVERAGE BALANCES:
Average Gross Loans, Net of Deferred Loan Fees $2,828,972 10.8%
Average Investment Securities 401,039 (10.1)%
Average Interest-Earning Assets 3,287,581 7.3%
Average Total Assets 3,675,091 6.5%
Average Deposits 2,927,956 3.0%
Average Borrowings 241,404 52.3%
Average Interest-Bearing Liabilities 2,427,883 10.5%
Average Shareholders' Equity 463,011 5.2%
Average Tangible Equity 248,147 8.5%
PERFORMANCE RATIOS:
Return on Average Assets 1.90%
Return on Average Shareholders' Equity 15.08%
Return on Average Tangible Equity 28.13%
Efficiency Ratio 40.61%
Net Interest Margin 4.79%
ALLOWANCE FOR LOAN LOSSES:
Balance at the Beginning of Period $ 27,250 18.1%
Provision Charged to Operating Expense 1,682 399.2%
Charge-Offs, Net of Recoveries (656) 827.4%
------------ -------
Balance at the End of Period $ 28,276 22.0%
============ =======
Allowance for Loan Losses to Total Gross Loans 0.99%
Allowance for Loan Losses to Total Non-
Performing Loans 209.82%
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS:
Balance at the Beginning of Period $ 2,130 (18.8)%
Provision Charged to Operating Expense -- --
------------ -------
Balance at the End of Period $ 2,130 (15.6)%
============ =======
For the Nine Months Ended
--------------------------------
Sept. 30, Sept. 30, %
2007 2006 Change
------------ ----------- -------
AVERAGE BALANCES:
Average Gross Loans, Net of
Deferred Loan Fees $3,011,946 $2,702,902 11.4%
Average Investment Securities 374,209 421,195 (11.2)%
Average Interest-Earning Assets 3,435,932 3,169,215 8.4%
Average Total Assets 3,825,784 3,557,227 7.5%
Average Deposits 2,976,676 2,857,260 4.2%
Average Borrowings 308,406 209,770 47.0%
Average Interest-Bearing
Liabilities 2,575,061 2,329,135 10.6%
Average Shareholders' Equity 494,731 450,069 9.9%
Average Tangible Equity 276,627 233,671 18.4%
PERFORMANCE RATIOS:
Return on Average Assets 1.38% 1.82%
Return on Average Shareholders'
Equity 10.67% 14.36%
Return on Average Tangible Equity 19.07% 27.66%
Efficiency Ratio 44.02% 40.75%
Net Interest Margin 4.46% 4.85%
ALLOWANCE FOR LOAN LOSSES:
Balance at the Beginning of
Period $ 27,557 $ 24,963 10.4%
Provision Charged to Operating
Expense 17,952 5,542 223.9%
Charge-Offs, Net of Recoveries (11,006) (2,229) 393.8%
------------ ----------- -------
Balance at the End of Period $ 34,503 $ 28,276 22.0%
============ =========== =======
Allowance for Loan Losses to Total
Gross Loans 1.07% 0.99%
Allowance for Loan Losses to Total
Non-Performing Loans 77.19% 209.82%
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS:
Balance at the Beginning of
Period $ 2,130 $ 2,130 --
Provision Charged to Operating
Expense (333) -- --
------------ ----------- -------
Balance at the End of Period $ 1,797 $ 2,130 (15.6)%
============ =========== =======
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED) (Continued)
(Dollars in Thousands)
Sept. 30, Dec. 31, %
2007 2006 Change
----------- ----------- ---------
NON-PERFORMING ASSETS:
Non-Accrual Loans $ 44,497 $ 14,213 213.1%
Loans 90 Days or More Past Due
and Still Accruing 199 2 9,850.0%
----------- ----------- ---------
Total Non-Performing
Loans 44,696 14,215 214.4%
Other Real Estate Owned 287 -- --
----------- ----------- ---------
Total Non-Performing
Assets $ 44,983 $ 14,215 216.4%
=========== =========== =========
Total Non-Performing Loans/Total
Gross Loans 1.39% 0.50%
Total Non-Performing
Assets/Total Assets 1.12% 0.38%
Total Non-Performing
Assets/Allowance for Loan
Losses 130.4% 51.6%
DELINQUENT LOANS $ 54,954 $ 19,616 180.1%
=========== =========== =========
Delinquent Loans/Total Gross
Loans 1.71% 0.68%
LOAN PORTFOLIO:
Real Estate Loans $1,099,100 $1,041,393 5.5%
Commercial and Industrial
Loans 2,033,009 1,726,434 17.8%
Consumer Loans 90,416 100,121 (9.7)%
----------- ----------- ---------
Total Gross Loans 3,222,525 2,867,948 12.4%
Deferred Loan Fees (2,654) (3,001) (11.6)%
----------- ----------- ---------
Loans, Net of Deferred
Loan Fees 3,219,871 2,864,947 12.4%
Allowance for Loan Losses (34,503) (27,557) 25.2%
----------- ----------- ---------
Loans Receivable, Net $3,185,368 $2,837,390 12.3%
=========== =========== =========
LOAN MIX:
Real Estate Loans 34.1% 36.3%
Commercial and Industrial
Loans 63.1% 60.2%
Consumer Loans 2.8% 3.5%
----------- -----------
Total Gross Loans 100.0% 100.0%
=========== ===========
DEPOSIT PORTFOLIO:
Demand - Noninterest-Bearing $ 690,513 $ 728,348 (5.2)%
Savings 94,150 99,254 (5.1)%
Money Market Checking and NOW
Accounts 476,257 438,267 8.7%
Time Deposits of $100,000 or
More 1,474,764 1,383,358 6.6%
Other Time Deposits 311,873 295,488 5.5%
----------- ----------- ---------
Total Deposits $3,047,557 $2,944,715 3.5%
=========== =========== =========
DEPOSIT MIX:
Demand - Noninterest-Bearing 22.7% 24.7%
Savings 3.1% 3.4%
Money Market Checking and NOW
Accounts 15.6% 14.9%
Time Deposits of $100,000 or
More 48.4% 47.0%
Other Time Deposits 10.2% 10.0%
----------- -----------
Total Deposits 100.0% 100.0%
=========== ===========
Sept. 30, %
2006 Change
----------- ---------
NON-PERFORMING ASSETS:
Non-Accrual Loans $ 13,470 230.3%
Loans 90 Days or More Past Due and Still
Accruing 6 3,216.7%
----------- ---------
Total Non-Performing Loans 13,476 231.7%
Other Real Estate Owned -- --
----------- ---------
Total Non-Performing Assets $ 13,476 233.8%
=========== =========
Total Non-Performing Loans/Total Gross Loans 0.47%
Total Non-Performing Assets/Total Assets 0.36%
Total Non-Performing Assets/Allowance for
Loan Losses 47.7%
DELINQUENT LOANS $ 24,081 128.2%
=========== =========
Delinquent Loans/Total Gross Loans 0.84%
LOAN PORTFOLIO:
Real Estate Loans $1,014,058 8.4%
Commercial and Industrial Loans 1,739,476 16.9%
Consumer Loans 100,180 (9.7)%
----------- ---------
Total Gross Loans 2,853,714 12.9%
Deferred Loan Fees (3,568) (25.6)%
----------- ---------
Loans, Net of Deferred Loan Fees 2,850,146 13.0%
Allowance for Loan Losses (28,276) 22.0%
----------- ---------
Loans Receivable, Net $2,821,870 12.9%
=========== =========
LOAN MIX:
Real Estate Loans 35.5%
Commercial and Industrial Loans 61.0%
Consumer Loans 3.5%
-----------
Total Gross Loans 100.0%
===========
DEPOSIT PORTFOLIO:
Demand - Noninterest-Bearing $ 756,901 (8.8)%
Savings 99,719 (5.6)%
Money Market Checking and NOW Accounts 434,738 9.6%
Time Deposits of $100,000 or More 1,393,721 5.8%
Other Time Deposits 288,702 8.0%
----------- ---------
Total Deposits $2,973,781 2.5%
=========== =========
DEPOSIT MIX:
Demand - Noninterest-Bearing 25.5%
Savings 3.4%
Money Market Checking and NOW Accounts 14.6%
Time Deposits of $100,000 or More 46.9%
Other Time Deposits 9.6%
-----------
Total Deposits 100.0%
===========
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES
PAID (UNAUDITED)
(Dollars in Thousands)
For the Three Months Ended
------------------------------
September 30, 2007
------------------------------
Average Interest Average
Balance Income/ Yield/
Expense Rate
-------------------- ---------
INTEREST-EARNING ASSETS
LOANS:
Real Estate Loans:
Commercial Property $ 775,605 $15,678 8.02%
Construction 227,779 4,814 8.38%
Residential Property 87,864 1,124 5.08%
-------------------- -------
Total Real Estate Loans 1,091,248 21,616 7.86%
Commercial and Industrial Loans 1,951,478 43,169 8.78%
Consumer Loans 94,751 1,798 7.53%
-------------------- -------
Total Loans - Gross 3,137,477 66,583 8.42%
Prepayment Penalty Income -- 131
Unearned Income on Loans, Net of
Costs (1,946) --
--------------------
Gross Loans, Net $3,135,531 $66,714 8.44%
==================== =======
INVESTMENT SECURITIES:
Municipal Bonds $ 70,984 $ 764 4.31%
U.S. Government Agency Securities 119,704 1,286 4.30%
Mortgage-Backed Securities 101,688 1,237 4.87%
Collateralized Mortgage Obligations 55,619 612 4.40%
Corporate Bonds 7,811 89 4.56%
Other Securities 4,820 84 6.97%
-------------------- -------
Total Investment
Securities $ 360,626 $ 4,072 4.52%
==================== =======
OTHER INTEREST-EARNING ASSETS:
Equity Securities (FHLB and FRB
Stock) $ 25,431 $ 350 5.51%
Federal Funds Sold 4,905 61 4.97%
Term Federal Funds Sold -- -- --
Interest-Earning Deposits -- -- --
-------------------- -------
Total Other Interest-
Earning Assets $ 30,336 $ 411 5.42%
==================== =======
TOTAL INTEREST-EARNING ASSETS $3,526,493 $71,197 8.01%
==================== =======
INTEREST-BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Savings $ 95,147 $ 567 2.36%
Money Market Checking and NOW
Accounts 471,756 4,164 3.50%
Time Deposits of $100,000 or More 1,438,711 19,263 5.31%
Other Time Deposits 310,711 3,888 4.96%
-------------------- -------
Total Interest-Bearing
Deposits $2,316,325 $27,882 4.78%
==================== =======
BORROWINGS:
FHLB Advances and Other Borrowings $ 285,199 $ 3,785 5.27%
Junior Subordinated Debentures 82,406 1,675 8.06%
-------------------- -------
Total Borrowings $ 367,605 $ 5,460 5.89%
==================== =======
TOTAL INTEREST-BEARING LIABILITIES $2,683,930 $33,342 4.93%
==================== =======
NET INTEREST INCOME $37,855
=========
NET INTEREST SPREAD 3.08%
=======
NET INTEREST MARGIN 4.26%
=======
For the Three Months Ended
-------------------------------
June 30, 2007
-------------------------------
Average Interest Average
Balance Income/ Yield/
Expense Rate
--------------------- ---------
INTEREST-EARNING ASSETS
LOANS:
Real Estate Loans:
Commercial Property $ 769,112 $15,534 8.10%
Construction 215,760 5,137 9.55%
Residential Property 86,596 1,157 5.36%
--------------------- -------
Total Real Estate Loans 1,071,468 21,828 8.17%
Commercial and Industrial Loans 1,848,369 41,206 8.94%
Consumer Loans 97,175 2,016 8.32%
--------------------- -------
Total Loans - Gross 3,017,012 65,050 8.65%
Prepayment Penalty Income -- 162
Unearned Income on Loans, Net of
Costs (2,117) --
---------------------
Gross Loans, Net $3,014,895 $65,212 8.68%
===================== =======
INVESTMENT SECURITIES:
Municipal Bonds $ 72,284 $ 762 4.22%
U.S. Government Agency Securities 118,696 1,233 4.16%
Mortgage-Backed Securities 111,568 1,317 4.72%
Collateralized Mortgage Obligations 60,199 651 4.33%
Corporate Bonds 7,907 89 4.50%
Other Securities 4,944 84 6.80%
--------------------- -------
Total Investment
Securities $ 375,598 $ 4,136 4.40%
===================== =======
OTHER INTEREST-EARNING ASSETS:
Equity Securities (FHLB and FRB
Stock) $ 25,290 $ 336 5.31%
Federal Funds Sold 13,340 176 5.28%
Term Federal Funds Sold -- -- --
Interest-Earning Deposits -- -- --
--------------------- -------
Total Other Interest-
Earning Assets $ 38,630 $ 512 5.30%
===================== =======
TOTAL INTEREST-EARNING ASSETS $3,429,123 $69,860 8.17%
===================== =======
INTEREST-BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Savings $ 99,457 $ 502 2.02%
Money Market Checking and NOW
Accounts 432,408 3,666 3.40%
Time Deposits of $100,000 or More 1,411,099 18,778 5.34%
Other Time Deposits 303,957 3,745 4.94%
--------------------- -------
Total Interest-Bearing
Deposits $2,246,921 $26,691 4.76%
===================== =======
BORROWINGS:
FHLB Advances and Other Borrowings $ 222,338 $ 2,919 5.27%
Junior Subordinated Debentures 82,406 1,660 8.08%
--------------------- -------
Total Borrowings $ 304,744 $ 4,579 6.03%
===================== =======
TOTAL INTEREST-BEARING LIABILITIES $2,551,665 $31,270 4.92%
===================== =======
NET INTEREST INCOME $38,590
=========
NET INTEREST SPREAD 3.25%
=======
NET INTEREST MARGIN 4.51%
=======
For the Three Months Ended
-----------------------------
September 30, 2006
------------------------------
Average Interest Average
Balance Income/ Yield/
Expense Rate
--------------------- --------
INTEREST-EARNING ASSETS
LOANS:
Real Estate Loans:
Commercial Property $ 774,934 $16,118 8.25%
Construction 174,332 4,333 9.86%
Residential Property 84,124 1,114 5.25%
--------------------- -------
Total Real Estate Loans 1,033,390 21,565 8.28%
Commercial and Industrial Loans 1,699,966 39,080 9.12%
Consumer Loans 99,268 2,255 9.01%
--------------------- -------
Total Loans - Gross 2,832,624 62,900 8.81%
Prepayment Penalty Income 492
Unearned Income on Loans, Net of
Costs (3,652) --
---------------------
Gross Loans, Net $2,828,972 $63,392 8.89%
===================== =======
INVESTMENT SECURITIES:
Municipal Bonds $ 71,301 $ 770 4.32%
U.S. Government Agency Securities 118,365 1,268 4.29%
Mortgage-Backed Securities 127,321 1,505 4.73%
Collateralized Mortgage Obligations 71,414 777 4.35%
Corporate Bonds 7,785 89 4.57%
Other Securities 4,854 85 7.00%
--------------------- -------
Total Investment
Securities $ 401,040 $ 4,494 4.48%
===================== =======
OTHER INTEREST-EARNING ASSETS:
Equity Securities (FHLB and FRB
Stock) $ 24,720 $ 342 5.53%
Federal Funds Sold 32,850 436 5.31%
Term Federal Funds Sold -- -- --
Interest-Earning Deposits -- -- --
--------------------- -------
Total Other Interest-
Earning Assets $ 57,570 $ 778 5.41%
===================== =======
TOTAL INTEREST-EARNING ASSETS $3,287,582 $68,664 8.29%
===================== =======
INTEREST-BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Savings $ 102,518 $ 440 1.70%
Money Market Checking and NOW
Accounts 441,880 3,512 3.15%
Time Deposits of $100,000 or More 1,358,908 17,881 5.22%
Other Time Deposits 283,173 3,345 4.69%
--------------------- -------
Total Interest-Bearing
Deposits $2,186,479 $25,178 4.57%
===================== =======
BORROWINGS:
FHLB Advances and Other Borrowings $ 158,998 $ 2,084 5.20%
Junior Subordinated Debentures 82,406 1,672 8.05%
--------------------- -------
Total Borrowings $ 241,404 $ 3,756 6.17%
===================== =======
TOTAL INTEREST-BEARING LIABILITIES $2,427,883 $28,934 4.73%
===================== =======
NET INTEREST INCOME $39,730
=========
NET INTEREST SPREAD 3.56%
=======
NET INTEREST MARGIN 4.79%
=======
For the Nine Months Ended
-------------------------------
September 30, 2007
-------------------------------
Average Interest Average
Balance Income/ Yield/
Expense Rate
--------------------- ---------
INTEREST-EARNING ASSETS
LOANS:
Real Estate Loans:
Commercial Property $ 765,880 $ 46,380 8.10%
Construction 218,693 14,889 9.10%
Residential Property 86,505 3,378 5.22%
--------------------- -------
Total Real Estate Loans 1,071,078 64,647 8.07%
Commercial and Industrial Loans 1,846,247 123,143 8.92%
Consumer Loans 96,839 5,987 8.27%
--------------------- -------
Total Loans - Gross 3,014,164 193,777 8.60%
Prepayment Penalty Income -- 710
Unearned Income on Loans, Net of
Costs (2,218) --
---------------------
Gross Loans, Net $3,011,946 $194,487 8.63%
===================== =======
INVESTMENT SECURITIES:
Municipal Bonds $ 71,883 $ 2,290 4.25%
U.S. Government Agency Securities 118,894 3,775 4.23%
Mortgage-Backed Securities 110,656 3,958 4.77%
Collateralized Mortgage Obligations 59,977 1,960 4.36%
Corporate Bonds 7,862 268 4.55%
Other Securities 4,937 252 6.81%
--------------------- -------
Total Investment
Securities $ 374,209 $ 12,503 4.45%
===================== =======
OTHER INTEREST-EARNING ASSETS:
Equity Securities (FHLB and FRB
Stock) $ 25,244 $ 1,055 5.57%
Federal Funds Sold 24,405 963 5.26%
Term Federal Funds Sold 128 5 0.1%
Interest-Earning Deposits -- -- 0.00%
--------------------- -------
Total Other Interest-
Earning Assets $ 49,777 $ 2,023 5.42%
===================== =======
TOTAL INTEREST-EARNING ASSETS $3,435,932 $209,013 8.13%
===================== =======
INTEREST-BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Savings $ 98,440 $ 1,530 2.08%
Money Market Checking and NOW
Accounts 444,173 11,302 3.40%
Time Deposits of $100,000 or More 1,418,825 56,539 5.33%
Other Time Deposits 305,217 11,283 4.94%
--------------------- -------
Total Interest-Bearing
Deposits $2,266,655 $ 80,654 4.76%
===================== =======
BORROWINGS:
FHLB Advances and Other Borrowings $ 226,000 $ 8,875 5.25%
Junior Subordinated Debentures 82,406 4,974 8.07%
--------------------- -------
Total Borrowings $ 308,406 $ 13,849 6.00%
===================== =======
TOTAL INTEREST-BEARING LIABILITIES $2,575,061 $ 94,503 4.91%
===================== =======
NET INTEREST INCOME $114,510
=========
NET INTEREST SPREAD 3.22%
=======
NET INTEREST MARGIN 4.46%
=======
For the Nine Months Ended
-----------------------------
September 30, 2006
-----------------------------
Average Interest Average
Balance Income/ Yield/
Expense Rate
--------------------- -------
INTEREST-EARNING ASSETS
LOANS:
Real Estate Loans:
Commercial Property $ 756,707 $ 46,049 8.14%
Construction 171,654 12,386 9.65%
Residential Property 85,601 3,303 5.16%
--------------------- -------
Total Real Estate Loans 1,013,962 61,738 8.14%
Commercial and Industrial Loans 1,596,234 106,816 8.95%
Consumer Loans 96,490 6,219 8.62%
--------------------- -------
Total Loans - Gross 2,706,686 174,773 8.63%
Prepayment Penalty Income -- 636
Unearned Income on Loans, Net of
Costs (3,784) --
---------------------
Gross Loans, Net $2,702,902 $175,409 8.68%
===================== =======
INVESTMENT SECURITIES:
Municipal Bonds $ 72,702 $ 2,321 4.26%
U.S. Government Agency Securities 123,986 3,887 4.18%
Mortgage-Backed Securities 136,067 4,787 4.69%
Collateralized Mortgage Obligations 75,583 2,434 4.29%
Corporate Bonds 7,906 268 4.52%
Other Securities 4,951 253 6.81%
--------------------- -------
Total Investment
Securities $ 421,195 $ 13,950 4.42%
===================== =======
OTHER INTEREST-EARNING ASSETS:
Equity Securities (FHLB and FRB
Stock) $ 24,619 $ 997 5.40%
Federal Funds Sold 20,457 748 4.88%
Term Federal Funds Sold -- -- --
Interest-Earning Deposits 42 1 4.01%
--------------------- -------
Total Other Interest-
Earning Assets $ 45,118 $ 1,746 5.16%
===================== =======
TOTAL INTEREST-EARNING ASSETS $3,169,215 $191,105 8.06%
===================== =======
INTEREST-BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Savings $ 110,817 $ 1,402 1.69%
Money Market Checking and NOW
Accounts 481,564 10,864 3.02%
Time Deposits of $100,000 or More 1,250,467 45,534 4.87%
Other Time Deposits 276,517 8,890 4.30%
--------------------- -------
Total Interest-Bearing
Deposits $2,119,365 $ 66,690 4.21%
===================== =======
BORROWINGS:
FHLB Advances and Other Borrowings $ 127,364 $ 4,699 4.93%
Junior Subordinated Debentures 82,406 4,734 7.68%
--------------------- -------
Total Borrowings $ 209,770 $ 9,433 6.01%
===================== =======
TOTAL INTEREST-BEARING LIABILITIES $2,329,135 $ 76,123 4.37%
===================== =======
NET INTEREST INCOME $114,982
=========
NET INTEREST SPREAD 3.69%
=======
NET INTEREST MARGIN 4.85%
=======
Source: Hanmi Financial Corporation
Released November 6, 2007